Why spend money on training programs for Small Business Should Invest in Employee? There are a lot of reasons, and we’ll go over the top ten in this tutorial. Sure, I get it. Money is often tight for a small business, and you have a million other things to do, like finding new customers, making new products, and just keeping the lights on. It’s easy to put training employees last on the list of things to do because there are more important things to do right now.
I’ll show you how employee training and development can help your Small Business Should Invest in Employee in big ways that are easy to see. We’ll look at ten good reasons to offer it, as well as some good examples of training and development programs for employees at different companies, and we’ll talk about how to make a good plan for training employees.
Here are 10 Reasons Why Your Small Business Should Invest in Employee Training;
1. Workers want to learn more
People want more Small Business Should Invest in Employee training than they get, according to survey after survey. Among other things, a Randstad study found:
“Even though 82% of employees think learning throughout life is important, close to 40% say their employers don’t give them chances to improve their skills.”
Two-thirds of employees in an InterCall study said that training is an important part of their decision to stay with their current company or job & Small Business Should Invest in Employee.
If a lot of workers want training and are willing to leave if they don’t get it, that’s one good reason to give it to them.
2. A good return on the money invested
It’s wrong to think of training and development for employees as just a cost. Instead, you should think of it as an investment that will pay off.
The American Society for Training and Development did a study that was often used to show that more money spent on training led to a higher total stockholder return (TSR). TSR is a way to measure how well a company is doing financially based on the price of its shares and how much it pays out in dividends. Companies that spent the most on training had a TSR of 37%, while companies that spent less had a TSR of 20%.
- Small Business Should Invest in Employee
- Employee training and development
- Total Stockholder Return (TSR)
So, if you want to make more money tomorrow, you should put money into training your employees today.
3. More Consistency
Have you ever wondered how some businesses can give customers the same experience in many different places? The answer is to train employees. People are trained to do things the same way all over the company, so the quality is always the same. Customers know what to expect, and workers are better able to do their jobs & Small Business Should Invest in Employee. 83% of businesses say they have gaps in skills, and training is the only way to close those gaps and get better, more consistent results.
4. A better fit with the company’s core values
When you’re training new employees, it’s a great time to tell them about your company’s core values. Make sure everyone knows what kind of business this is. Give them training on diversity to help them work well with a diverse staff and customer base. Explain what kinds of behavior, like discrimination and harassment, are not allowed in your company and give examples of Small Business Should Invest in Employee.
A good orientation program can set employees up for success and keep them from getting into a lot of trouble later on. And programs to remind current employees of these values can help reinforce them. These lessons will teach you more:
5. More Flexibility
Cross-training employees teach them how to do work that is different from what they normally do. This can be very helpful for both the employee and the company. For example, let’s say you have two employees. Jean’s job is to get new customers, and Alex’s is to come up with new products Small Business Should Invest in Employee.
Overall, the way jobs are divided up works well, but spending a little time on cross-training can be very helpful. Jean learns more about how the products work, and Alex finds out what the customers want. These lessons can help them do a better job.
Cross-training employees also gives them more freedom: they can fill in for each other when they are out sick, and they can move up in their careers much more quickly. Jean might, for example, find that she likes coming up with new ideas for products and move into that role when Alex leaves. Small Business Should Invest in Employee who get to work in more areas and learn more about them, and managers have more freedom to fill the roles they need.
6. Higher Productivity
You can be more productive when you know what you’re doing. Employees don’t have to waste time trying to figure out how to do their jobs or bothering coworkers with questions about how things work. They can just get to work and be more productive Small Business Should Invest in Employee.
In many ways, learning new skills can also make you more productive. It’s easy to fumble around and figure out how to do something, but training can lead to those “Aha!” moments when you realize that you can do the same work in half the time by following a more efficient process.
7. More Innovation
Many industries are being affected by the fast pace of technological change. Those that can’t adapt are in trouble (remember Kodak?).
Training and development for employees are important because it helps them keep up with new technology and changes in the industry. Innovation doesn’t just happen. To come up with new ideas, your employees need to have access to the latest information of Small Business Should Invest in Employee.
8. Fewer people leaving their jobs
Given what we already know about how many employees want more training, it shouldn’t come as a surprise that companies with training programs for their employees have less employee turnover, more loyal employees, and happier customers towards Small Business Should Invest in Employee.
One study of a hospitality company found that turnover dropped from 89.6% before the training program to 56.7% after it. This is a very impressive result, especially considering that part-time hotel workers tend to leave their jobs often. The study also found that employees were much happier than before.
9. Better Quality
Say you own and run a coffee shop. You want your customers to drool over your cappuccinos and flat whites, so you buy a state-of-the-art Italian espresso machine. Do you think the results will be good? Not unless you teach your barista how to use the machine & Small Business Should Invest in Employee.
The same is true for all businesses. You can spend a lot of money on the best equipment, the best raw materials, and the best software systems, but if your employees don’t know how to use them, you won’t get the results you want. Effective training programs are the only way to make sure that everything you do is of high quality.
10. More chances to get ahead
When you train your employees and give them better skills, you make them more likely to move up in the company.
That’s great for their careers and job satisfaction, but it’s also great for you as a business owner or manager. You end up with a pool of skilled employees already working for you, so when a job opens up, you can just pick someone from that pool instead of having to do a long and expensive search outside the company.